Pantaloon Retail India Ltd

7/31/2019 Pantaloon Retail India Ltd .

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` PANTALOON RETAIL INDIA LTD

By: Arun Sharma



CONTENTS

Part one : Concept Page no. 1&2

Part two : Company Profile Page no. 3&4

Part three : Group Companies Page no. 5&6

Part four : Sector Synopsis Page no. 7-10

Part five : Major Industry Page no. 11-14

Contributors

Part six : Retail Format Page no. 15

Part seven : Company Outlets Page no. 16&17

Part eight : Product Offerings Page no. 18&19

Part nine : Channel of Page no. 20

Distribution

Part ten : Company Strategies Page no. 21&22

Part ten : Future Plan Page no. 23



CONCEPT

The Organized retail industry in India did not evolve till the early 1990s. Until then, the

industry was dominated by the un-organized sector . It was a seller market, with a limited

number of brands, and little choice available to customers. Lack of trained manpower, tax

laws and government regulations all discouraged the growth of organized retailing in Indiaduring that period. Lack of consumer awareness and restrictions over entry of foreign

players into the sector also contributed to the delay in the growth of organized retailing.

This allowed the un-organized sector to rule the Indian retailing industry. It was during this

time that the foundation of PRIL was laid by Biyani.

The history of PRIL can be traced to the mid -1980s, when Biyani, a commerce graduate

quit his family business of trading textiles and yarn to start manufacturing apparels. In

1987, PRIL was incorporated as Manz Wear Pvt Ltd and manufactured readymade trousers

under the ‘Pantaloon’ brand. On September 20,1991 , Manz Wear Pvt Ltd, went public and

in 1992, the name was changed to Pantaloon Fashions (India) Limited (PFIL). At that

time , the company was distributing its garments across India through multi-brandgarments stores.

In 1992, the company inaugurated its first exclusive mens store called Pantaloons Shoppe

and by 1995, the number of stores had grown to 70, with most of them being franchisee

outlets . Biyani felt that the best way to realize the potential of the retail sector was to

launch departmental stores owned and managed by the company. In august 1997, the first

departmental store called Pantaloons was opened in the city of Kolkata with an investment

of Rs 0.7 million. Later the investment in this store was raised to Rs 50 million and Rs 0.4

million was spent on advertising it, an unheard sum for a retailer to spend on advertising at

that time . The store was a success and recorded revenues of Rs 100 million within the first

year of operations. It was the first retail store in India that marketed apparel for the entire

family, unlike other stores, which catered to a single market segment such as men, women,

or kids. In 1999, the company’s name was changed to Pantaloon Retail (India) Limited

(PRIL).

This is Pantaloon Retail (India) Limited, (a Pantaloon Knowledge Group Company) -

India’s face of organized retail business. It is India’s leading retailer that now operates

multiple retail formats in both the value and lifestyle segment of the Indian consumer

market. Headquartered in Mumbai (Bombay), the company operates over 7 million square

feet of retail space, has over 1000 outlets (including shop-in-shops) across 53 cities in India

and employs over 25,000 people.

Presently, in to five lines of businesses – fashion and footwear, food, general merchandise,

leisure & entertainment and home – the company operates multiple delivery formats : the

fashion store format under the Pantaloons brand; the showcase seamless mall under the

Central brand; the hypermarket discount store format under the Big Bazaar brand; the food

& grocery retail format under the Food Bazaar brand, and apparel stores under Fashion



Station. Some of its other formats include, Home Town, Depot, Shoe Factory, Brand

Factory, Blue Sky, aLL, Top 10 and Star and Sitara.

The Company plans entry in telecommunications retail and other lines of businesses such

as wellness and beauty as well as books and music, besides pantalooning a portal for e-retailing in the near future as another delivery format.

INTRODUCTION: Pantaloon Retail (India) Limited, is India’s leading retailer that

operates multiple retail formats in both the value and lifestyle segment of the Indian

consumer market. Headquartered in Mumbai (Bombay), the company operates over 7

million square feet of retail space, has over 1000 stores across 53 cities in India and

employs over 25,000 people.

VISION: Future Group shall deliver Everything,

Everywhere, Every time for Every Indian Consumer in the most profitable manner

MISSION: We shall be efficient, cost- conscious and committed to quality in whatever we

do.

CORE VALUES: Rewrite rules. Retain values

REGISTERD AND CORPORATE OFFICE :

Pantaloon Knowledge House, Shyam Nagar, Off. Jogeshwari Vikhroli Link Road,

Jogeshwari (East), Mumbai 400 060.

The Registered Office of the Company was shifted from Venkatesh Bhavan, 4th Floor

86 Mirza Street, Mumbai 400003 to Pantaloon House, G 11 , M.I.D.C. Cross Road A,

Andheri East, Mumbai (400 093 )

Tel: (+91 22) 56442200 Fax: (+91 22) 56442201. Website:

www.pantaloon.com



COMPANY PROFILE

PantaloonRetail Indialimited

(India)Limited

Life styleRetailing

Valueretailing

Entertainment leisure

ntaloo Central Fashionstation

allMeLA

BigBazaar

FoodBazaar



Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retailformats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 7 million squarefeet of retail space, has over 1000 stores across 51 cities in India and employs over 25,000 people.

The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar,a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look,touch and feel of Indian bazaars with aspects of modern retail like choice, convenience andquality and Central, a chain of seamless destination malls. Some of its other formats include,

Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mbazaar andStar and Sitara. The company also operates an online portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, alarge-format home solutions store, Collection i, selling home furniture products and E-Zonefocused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by theUS-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona.

Pantaloon Retail is the flagship company of Future Group, a business group catering to theentire Indian consumption space.



GROUP COMPANIES

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,

rewards and perfection. Future encourages us to explore areas yet unexplored, write rules

yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve.

Future Group is one of the country’s leading business groups present in retail, asset

management, consumer finance, insurance, retail media, retail spaces and logistics. The

group’s flagship company, Pantaloon Retail (India) Limited operates over 7 million

square feet of retail space, has over 1000 stores across 53 cities in India and employs

over 25,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar,

Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail

format, futurebazaar.com.

Future Group companies includes, Future Capital Holdings, Future Generali India IndusLeague Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and

Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on asset

management and consumer credit. It manages assets worth over $1 billion that are being

invested in developing retail real estate and consumer-related brands and hotels.

The group’s joint venture partners include Italian insurance major, Generali, French

retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based

Lee Cooper and India-based Talwalkar’s, Blue Food and liberty shoes.



BOARD OF DIRECTOR

Mr. Kishore Biyani Mr. S Doreswamy

Managing director Director

Mr. Gopikishan Biyani Mr. Darlie Koshy

Wholetime Director Director

Mr. Rakesh Biyani Mr. Anil Harish

Wholetime Director Director

Mr. Shailesh Haribhakti Ms. Anju Podda

Director Director

Ms. Bala Deshpande Mr. Ved Prakash Arya

Director Director

FOUNDER: Mr. Kishore Biyani



SECTOR SYNOPSIS

Retail is the world largest private industry with global retail sales of roughly USD 8

trillion. In India, however, the retail sector has seen a high level of fragmentation with a

large share held by unorganized players.

The domestic consumption story of India is at a point of inflection. The Indian economygrew at an unprecedented rate of 9.4% during 2006-07 with the Gross Domestic Producttouching a trillion dollars at market prices. Private final consumption expenditurecontinued to be a key driver for this growth and is estimated to be US $560 billion. On aconservative estimate the potential market size for retailing is around 56% of privateconsumption or around US $310 billion. Over the last couple of years, modern retail hasemerged as one of the fastest growing sectors in the Indian economy. The modern retailsector in India is around 4.6% of the wider retail market, compared to 20% and 38% inChina and Brazil respectively. This provides an enormous opportunit y for modern retailers

to benefit from rising consumption expenditure as well as capture a larger pie of the wider retail market. The modern retail sector is expected to enjoy 30-35% CAGR (compoundedannual growth rate) and gain 11% share of the retail market within the next four years. Theoptimism that is now associated with the modern retail sector has now found manyvotaries. Among them, consultancy firm, AT Kearney has identified India as the world'smost attractive emerging market retail destination for the third consecutive year. Favorabledemographics, booming consumerism and strong economic growth are acting as a keycatalyst. Changing attitudes towards consumption and a rising propensity to consumehighlight the fundamental shifts that are taking place in a traditionally debtaverse society,in which conspicuous consumption was once frowned upon.

Pantaloon Retail (India) Limited's business strategy was designed to capture these benefitsof change and the rising consumerism that is evident in the country. In recent months, largedomestic and international companies are showing strong interest in the retail sector, whichyour Company has been part of for a decade now. Pantaloon Retail believes that the next phase of India's economic development will happen through increased consumption. Risein consumption in India is setting about a virtuous cycle of consumption-led growth anddevelopment. Increased consumption is leading to rise in manufacturing and job creation.This is in turn is leading to income generation and wealth creation which is aiding further



growth in consumption. Rather than limit itself to just a few categories in retail, theCompany therefore looked at capturing a significant portion of the entire consumptionopportunity that the Indian economy provides. These are being done through multipleinitiatives in existing businesses and also by building new businesses on the peripheries of the retail business. The Company has significantly strengthened its existing mature

businesses and is expanding established retail formats into new geographies and cities. Atthe same time, to capture new consumption trends, the Company has rolled out a largenumber of new initiatives and retail formats in segments like home improvement,consumer durables, communication products, books, music and entertainment, health, beauty and wellness among others. These specialty retail formats are in many cases the firstin India and are expected to garner a significant portion of consumption expenditure goinginto new categories. During the period under review, the Company opened 11 Pantaloons,27 Big Bazaar, 13 stand-alone Food Bazaar, 1 Central and 5 Brand Factory. SubsidiaryCompany, Home Solutions Retail India Limited rolled out 2 Home Town, very-largeformat stores along with other retail formats. New stores covering around 2 million squarefeet of retail space were rolled out taking the total retail space under operation to around

5.2 million square feet as on June 2007. The Company plans to increase its retail space bynearly 4.5 million to 5.5 million square feet in the coming year. In order to further leverageits reach and ability to attract increasing number of customers within its stores, theCompany has rolled out new businesses and subsidiaries in the areas of consumer finance,capital, insurance, real estate funds, retail media, brand development and logistics. Each of these new initiatives is a step towards driving more value from its existing retail businessesand at the same time helps catalyses consumption within its stores.

In late 1990's the retail sector has witnessed a level of transformation. Retailing is being

perceived as a beginner and as an attractive commercial business for organized business i.e.

the pure retailer is starting to emerge now. Organized retail business in India is very small

but has tremendous scope. The total in 2005 stood at $225 billion, accounting for about

11% of GDP. In this total market, the organized retail accounts for only $8 billion of total

revenue. According to A T Kearney, the organized retailing is expected to be more than

$23 billion revenue by 2010.

In organized retailing will grow faster than unorganized sector and the growth speed will

be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.

Retailing will show good prospects in cities like Mumbai, Delhi, Chennai, kolkata,

Banglore and Kanpur. After Dubai, Singapore and Hong Kong, In India Delhi will be the

next big retail destination, According to Confederation of Indian Industries whose findings

have shown that Delhi has the good resources and good conditions for the retail sector. Outof the total earnings of the Government of Delhi Rs 11,000 crore, Rs 6,500 crore is

achieved from the retail sector.

The organized sector is expected to grow faster than GDP growth in next few years driven

by favorable demographic patterns, changing lifestyles, and strong income growth. This

organized retail sector mix includes supermarkets, hypermarkets discounted stores and

specialty stores, departmental stores.



Growth drivers in India for retail sector

• Rising incomes and improvements in infrastructure are enlarging consumer

markets and accelerating the convergence of consumer tastes

• Liberalization of the Indian economy

• Increase in spending Per capita Income.

• Advent of dual income families also helps in the growth of retail sector.

• Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic.

• Consumer preference for shopping in new environs

• The Internet revolution is making the Indian consumer more accessible to the

growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels

is helping in creating awareness about global products for local markets.

• About 47% of India's population is under the age of 20; and this will increase to

55% by 2015. This young population, which is technology-savvy, watch more than 50 TV

satellite channels, and display the highest propensity to spend, will immensely contribute to

the growth of the retail sector in the country.

• Availability of quality real estate and mall management practices

• Foreign companies' attraction to India is the billion-plus population.

GROWTH OF ORGANISED RETAIL IN INDIA

The total retail sector in India is estimated at around USD 320 billion.

Estimated organized retail in India to reach 12% to 13% of the total retail market by

2010 with sales of Rs 1700-1800 billion.



According to this year’s Global Retail Development Index India is positioned as theleading destination for retail investment. This followed from the saturation in western

retail markets and we find big western retailers like Wal-mart and Tesco entering into

Indian market. India’s retail industry accounts for 10 percent of its GDP and 8 percent

of the employment to reach $17 billion by 2010. There are about 300 new malls, 1,500

supermarkets and 325 departmental stores being built in the cities very soon.

In organized retailing will grow faster than unorganized sector and the growth speed

will be responsible for its high market share, which is expected to be $ 17 billion by

2010-11.The organized sector is expected to grow faster than GDP growth in next few

years driven by favorable demographic patterns, changing lifestyles, and strong income

growth. This organized retail sector mix includes supermarkets, hypermarkets

discounted stores and specialty stores, departmental stores. For example, Spencer

network has 69 stores, which includes seven Spencer hypermarkets, three Spencer

super markets and 49 Spencer .

Break up of consumer’s expenditure in organized retail



Percentage of Organized Retail

USA - 85%

Taiwan - 81%

Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%



MAJOR INDUSTRY CONTRIBUTORS

Name US $ Million

Future Group (Pantaloon) 444

Shoppers Stop 133

Landmark (Lifestyle) 80

Trent 53



Subhiksha 44

Vishal Mega Mart 25

India is witnessing an unprecedented consumption boom. The economy is growing between 7 and 9 percent and the resulting improvements in income dynamics along

with factors like favorable demographics and spending patterns are driving the

consumption demand.

Indian Retail Industry is ranked among the ten largest retail markets in the world. The

attitudinal shift of the Indian consumer in terms of "Choice Preference", "Value for

Money" and the emergence of organized retail formats have transformed the face of

Retailing in India. The Indian retail industry is currently estimated to be a US$ 200

billion industry and organized Retailing comprises of 3 per cent (or) US$6.4 Billion of

the retail industry. With a growth over 20 percent per annum over the last 5 years,

organized retailing is projected to reach US$ 23 Billion by 2010.

The Indian retail industry though predominantly fragmented through the owner -run "

Mom and Pop outlets" has been witnessing the emergence of a few medium sized

Indian Retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside

(Tata Group) and Lifestyle International.

Given the attractiveness of the Indian retail sector, foreign retailers like Wal-Mart,

Carrefour SA( Europe's largest retailer) and Tesco Plc( the UK's largest retailer) were

keen to enter this growing market, despite the Indian retail sector being closed to

foreign direct investment (FDI). In February 2006, the Indian Government had

announced its decision to allow FDI of upto 51% in single brand retailing. Wal-Mart

had said that India is high on its priority and that it is closely monitoring the

Government's policy on FDI in the retail sector.

In the last few years, Indians have gone through a dramatic transformation in lifestyle

by moving from traditional spending on food, groceries and clothing to lifestyle

categories that deliver better quality and taste. Modern retailing satisfies rising demand

for such goods and services with many players entering the bandwagon in an attempt

to tap greater opportunities. According to the 'Global Retail Development Index

(GRDI) 2006' by the management consulting firm 'A.T. Kearney', India has retained

it's topmost position in the annual study of retail investment attractiveness among 30

emerging markets.

.The Domestic competitors of Pantaloon in 2005:



RETAILER REVENUES

(Rs.bn)

TOTAL FLOOR

SPACE (lakh sq ft)

TOTAL NO. OF

OUTLETS

2003-04 2004-05 2003-04 2004-05

(estimated)

2003-04 2004-05

(estimated)

Pantaloon

RPG

Shopper’s stop

Lifestyle

WestsideEbony

Piramyd

Globus

6.50 13.00 11.0 30.0 31 74

5.45 8.00 5.2 7.5 110 130-134

4.04 5.45 6.3 8.5 13 40

2.30 3.10 3.2 3.2 7 0

1.20 N.A. 2.3 3.3 14 18/19

0.85 1.00 1.7 2.4 8 12

0.72 1.40 1.3 5.0 3 7/8

N.A. N.A. 1.5 6.0

(next3years)

7 14/15

(next3years)

Pantaloons Retail India Limited, which operates Pantaloons superstores, has around 14

Pantaloon Family Stores and 10 Pantaloon `Shoppes' across the country. In addition, they

also run 4 hypermarkets under the `Big Bazaar' brand. Since the opening of their first store

in 1997, in terms of financial size, Pantaloon has already raced to the front to become the

country's largest public limited retail giant with a turnover of US$ 87 million. They have

managed to do so, among other strategies, by keeping costs down. Their policy of buying

directly from manufacturers (to eliminate the middleman), cash purchases (to get a cash

discount) and optimum stock management has helped them to pass on the benefits to the

customers that work well in this price sensitive market. Their future plans, to become a

US$ 217 million super retailer by 2005, include setting up eight new Big Bazaars

(hypermarkets), four new Pantaloon stores, three independent food stores and a mall inBangalore

RPG Group: According to the above-mentioned survey, the most enthusiastic player in

organized retail in India is the Goenka group's RPG Enterprises. RPGs retail empire is one

of the largest in India, having more than a 100 stores that includes Food World - an alliance



with Dairy Farm International of the Jardine Matheson Group; Music World - a 50:50 joint

venture with Dairy Farm International, Health & Glow (cosmetics, health products and

medicines) and Giant (hypermarkets). Primarily based in south India, the turnover of RPGs

retail empire is around US$ 98 million and accounts for nine percent of the group's

turnover.

Landmark Group: Owned by the $600 million Landmark Group, which operates 170

stores worldwide, Lifestyle forayed into the Indian retail market in 1998. Lifestyle India

achieved a turnover of US$ 29 million in 2002-03 with five stores in operation. One of the

primary reasons for their success in India has been their experience in running retail chains

overseas. Their strategic decision to set up everything under one roof versus setting up

separate stores in different segments has stood them in good stead. Another advantage they

have is that Lifestyle has developed its own in-house label, which comprises 11 percent of

total merchandise. In addition, its parent company does bulk purchases of commodities

that are sold at these stores so that the products can be sold at a cheaper rate. Lifestyle plans to open six more stores aiming to offer around 500,000 square feet of shopping space

by next year and to achieve a turnover of US$ 50 million in 2003-04. Pantaloon and

Lifestyle are considered to be the powerhouses of retail in India. According to industry

sources, in the next 12 to 18 months, both these superstores will offer two million square

feet of retail space between them.

K. Raheja Group: The K Raheja promoted Shoppers' Stop, credited with starting the retail

revolution in India, is said to be the leader in department store format. At present,

Shoppers' Stop has 10 stores across India. Shoppers' Stop also runs the 13 stores of the

bookstore chain `Crossword' which it acquired two years ago. The future plans of this

chain, having a turnover of US$ 66 million, are to open 24 more Shoppers' Stop Stores in

the next two years and 12 more Crossword stores by the end of this year. A unique feature

of Shoppers' Stop operations is that their private labels such as Stop, Kasish, Life and

Carrot contribute 20 percent to its turnover.

Tata Group: The US$ 9.7 billion Tata Group's retail arm Trent runs the Westside chain of

stores. Trent has already established 11 Westside departmental stores measuring 20,000

square feet each, in Mumbai, Bangalore, Hyderabad, Chennai, Pune, New Delhi, Kolkata,

Nagpur and Ahmedabad. The company hopes to expand rapidly with similar format stores

that offer a balance between style and price retailing. Future plans include establishing the

Westside brand in all large towns with a population of over 100,000. Trent is also planning

to venture into food and grocery retailing through a chain of hypermarkets. Group company

Tata Coffee, which holds over 32 percent in Barista Coffee Company, has targeted 160

espresso bars in India and abroad in the recent future. Some of the other well-known names



in the Indian retail arena are ITC Lifestyle, Globus, Nilgiris, Café Coffee Day, Quickys,

Amorettos, Bata, Super Sabka Bazaar, and Subhiksha etc.

PRIL and its Domestic Competitors

(as of april 2006)

Companies Total Outlets /

Department

Stores

Number of

Cities Covered

Retail Space

Covered (in

million sq.ft)

Employee

Strength

PRIL 99 25 3 12,000

Shopper’s stop 20 10 0.75 2,400

Trent 27 14 0.45 1,200

Globus stores 12 8 0.25 NA

RETAIL FORMATS

Traditional Retail Format

Format Definition Value position India examples

Counter stores Food: Family run stores, selling

essentially food items.

High service, low

price

Kirana stores

Kiosks Pavement stalls selling limited

variety of food & beverages.

High service Paan shops

Street markets Regular markets held at fixed centre

retailing food & general

merchandise items.

Large selection,

low price

Village haats

Street vendors Mobile retailers essentially selling

perishable food items-fruits.

High service Vegetable

vendors

Modern Retail Format



Some of the modern retail format and their value proposition are given below.

Format Definition Value position

Department stores Multiple product categories, usually lifestyle

driven with apparel/accessories dominating.

Service & choice

Super market/

Convenience stores

Food and household products. Convenience

Hyper markets/

Discount stores

Large stores in big box format, with volume based

discounted price.

Price & choice

Specialty stores/

Category Killers

Extensive range of products under a single

category.

Service

Seamless Mall Apparel, Accessories, Lifestyle products,

Entertainment.

Convenience, service

& choice

COMPANY OUTLET

Pantaloon is an aggressive player in the retail space , with a presence across multiple

formats. The ability to repeat its strong performance across newer formats would determine

its future growth.

The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergoneseveral transitions. When it was first launched, this store mostly sold external brands.Gradually, it started retailing a mix of external brands while at the same time introduced itsown private brands. Initially positioned as a family store, it finally veered towards becoming a fashion store with an emphasis on 'youth' and clear focus on ‘fresh

fashion’.

Today, the fashion store extends to almost all the major cities across thecountry. Pantaloons has established its presence with stores not just in the metros, butalsoinsmallertowns.

Pantaloons stores have a wide variety of categories like casualwear, ethnicwear,formalwear, partywear and sportswear for Men, Women and Kids.



Pantaloon operates over 7 million square feet of retail space, has over 1000 outlets

(including shop-in-shops) across 53 cities in India and employs over 25,000 people.

PANTALOON OUTLETS

As on 30th june , 2006,the total number of pantaloon stores stood at 21 , with 9

stores opening during the year under review .

These are as follows-

City mall-Ahmedabad 20000sq. ft

Sigma hall-Bangalore 20000sq. ft

Borivali-Mumbai 30000sq. ft

Sahara mall-Luck now 20000sq. ft



Kalani mall-Indore 20000sq. ft

Runwal mulund-Mumbai 19500sq. ft

Cross river mall-Shahdara 25000sq. ft

Cinepux mall-Mangalore 23550sq. ft

Rajkot 18000sq. ft

PRODUCT OFFERINGS

Pantaloon is positioned as an entire family store and it deals in men’s wear, ladies wear and

kid’s wear. It mainly focuses on its Private label program me because the share of private

label has increased over the previous year and stands at nearly 75%. Below are some of the

company’s private labels:

MEN’S WEAR

John Miller

JM Sports

Bare Denim

Rig

Ajile

Lombard

T-2000

Bare Leisure



LADIES WEAR

Honey

Akkriti

Annabelle

Mix & Match

Ajile

Rig

KID’S WEAR

Chalk

Bare 7214



ACCESSORIES



Cosmetics

Stationary for kids

Books & Magazines

CHANNELS OF DISTRIBUTION

Future logistics solution limited ,a wholly owned subsidiary has been formed to offer more

strategic ,systematic approach to meet group large captive supply chain management (scm)

On the backing of the group association, alliances and key vendors FLSL will also extend

its services bonquet to them in near future.

Future logistic team currently oversee the operation of an existing fleet of over 200

delicated trucks ,contracted from established regional and national transport carrier.

GDS being piloted for outbound deliveries and would be rolled out nationally in near

future.

In term of warehouse space nearly 2 million squre feet was operational as on30 dec 2007

consisting of MASTER DISTRIBUTIONCENTRE and other regional dcs

FUTURE LOGISTIC has build about 4 mega merchandising hub of about 250000 feet

located in 4zones of India

Pantaloon has also their own factory outlet from where they supply direct to their stores



COMPANY STRATEGIES

PROMOTIONAL STRATEGIES

1. Green Card is passport to a whole new world of exclusive benefits and privileges.

• Instant discounts* for every time you shop at Pantaloons.

• Exclusive shopping days to get hold of latest merchandise.

• Regular updates on collections and promos via catalogues, sms and email.

2. Pantaloon continued to be the title sponsor for femina miss India 07 peagent

3. The company’s flagship format, pantaloons went in for an exiting makeover during theyear under review, the highlight being the signing up of style icons BIPASHA BASU &ZAYED KHAN as its brand ambassadors.



PRICING STRATEGY

-The largest player in the organized retail Pantaloon Retail came-up with 1500 -2000 sq ft

no-frills KB fair Price shops in this year. They propose to provide branded products at 10%

less than the Mrp and 20% off on the local brands, which is similar to what has been

carried out in Big bazaar.

Keeping costs down is clearly the cornerstone of policy at both chains. Pantaloon chief

Biyani ensures cheaper prices by keeping watch at every step.

Says Biyani: "We do three things -- buy directly from the manufacturers so that the middle

man is eliminated. We buy in cash and get a cash discount, and manage our stocks turns so

that we don't have money stuck up. The benefits are passed on to the customers.”

Cash discounts (for buying goods upfront in cash) on the other hand could range from 2 per

cent to 10 per cent. And the company pushes for a stock turn of 40-50 times a year for its

food items, and once a month for ready to wear.

Backward integration is the name of the game in Pantaloon stores -- and they help to keep

costs down dramatically. Almost 70 per cent of the ready-to-wear products in the store are

manufactured by the group's own garment units. As a result it is able to offer prices in

ready-to-wear that are virtually 30 per cent cheaper than competitors. They increase there

margins by pushing their own in-house labels.

POSITIONING STRATEGY

The first Pantaloons was opened in Gariahat in 1997. Over the years, it has undergone

several transitions. When it was first launched, this store mostly sold external brands.

Gradually, it started retailing a mix of external brands while at the same time introduced

its own private brands. Initially positioned as a family store, it finally veered towards

becoming a fashion store with and emphasis on youths and clear focus on ‘FRESHFASHION’. .

PANTALOON Retail is in revamp mode. Changing its positioning from a family-

oriented store to a fashion store, Pantaloon stores are being re launched on the `youth'

http://www.pantaloon.com/

http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/

http://www.pantaloon.com/

http://www.indiaretailbiz.com/blog/2007/08/10/biyani-announces-entry-into-small-format-last-mile-neighbourhood-retail-space-plans-to-se-up-1500-fair-price-shops-in-two-years/



platform. Sporting a new baseline, Pantaloon will now carry the `Fresh Fashion'

statement across its 12 stores. India is a young country compared to the others and we

wanted our brand to get associated with this emerging target audience. This is the first

time that we are re launching our stores targeting youth and even women, since they are

the ones defining most purchasing decisions.

FUTURE PLANS

1 The country's largest retailer, Pantaloon Retail, is cooking up plans to significantly

increase its presence in the rapidly growing domestic food industry. The retailer is also

working towards getting closer to the Indian homemaker by offerings in store which will

take away the negative labour back home with a range of products in a` live kitchens'

format, including home style gravies, dals, cooked rice.

2 PANTALOON is increasing number of FOOD BAZAAR outlet from 40 to150

3 Pantaloon to raise funds; plans IPO of Future Capital finance unit

Leading Indian retailer Pantaloon Retail India Ltd has announced that it would sell

shares and warrants to investors and founders of the company to raise over $300 million

and also sell 10% of Future Capital Holdings.



4. Diversifying its retailing initiatives, the Rs 650-crore Pantaloon Retail (India) is

planning to start its own company parlors at its Big Bazaar outlets.

5 PANTALOON announced its plans to form a joint venture with ITALY based

GENERALI group to tap insurance sector

Documents

Pantaloon Retail India Ltd